Pension Clawbacks

[Dixie Cup]

My hubby draws a CF pension and when he turns 65 he will lose, dollar for dollar whatever he collects in CPP benefits. Goober is right; it's because he didn't pay full CPP when he was in the Forces. He also didn't pay much attention when the pension was changed back in the 70's. He was just a "young buck" and wasn't thinking about retirement. Now, of course, he wishes he had because he decided to stay with the pension he had rather than taking the other one that was offered. Had he made the change, he likely would have been better off. Having said that, while I don't know the specifics of the two pensions (it was before my time), I think the clawback when he starts collecting CPP would have been the same.


So we've decided we'll just keep on working as long as we can because we doubt that we could survive on just pensions alone considering how we're so over taxed.


Dix

 

[9969]

I had 30 years with the government, I paid all the fees, and 10% of my pay went to my pension. When I got sick, the government took about 60% back, and said I owed the rest. If I hadn't got sick, I would have rec'd my pension unrefuced and CPP at 60-65. This happens to anyone anywhere paying into a registrred pensiomn.

 

[Murphy]

My hubby draws a CF pension and when he turns 65 he will lose, dollar for dollar whatever he collects in CPP benefits. Goober is right; it's because he didn't pay full CPP when he was in the Forces. He also didn't pay much attention when the pension was changed back in the 70's. He was just a "young buck" and wasn't thinking about retirement. Now, of course, he wishes he had because he decided to stay with the pension he had rather than taking the other one that was offered. Had he made the change, he likely would have been better off. Having said that, while I don't know the specifics of the two pensions (it was before my time), I think the clawback when he starts collecting CPP would have been the same.


So we've decided we'll just keep on working as long as we can because we doubt that we could survive on just pensions alone considering how we're so over taxed.


Dix

If you check into it, you will find that he will lose approximately what he would get in OAS, not CPP, unless he retired as a chief, major or a colonel. That part of his pension that is lost is called the bridge benefit. The bridge benefit is withdrawn at age 65, even if you do not claim any other pension.

You can go here for more info on that. www.tpsgc-pwgsc.gc.ca/fac-caf/cntctns-cntctus-eng.html

 

[JamesBondo]

I know how you feel. We hired a guy to work casual for a few days. His welfare program reduced their support by the amount that he earned. What a bunch of GD thiefs, stealing from a guy on welfare.

 

[pgs]

I know how you feel. We hired a guy to work casual for a few days. His welfare program reduced their support by the amount that he earned. What a bunch of GD thiefs, stealing from a guy on welfare.

A big part of the reason so many have trouble getting off the welfare rolls .

 

[JamesBondo]

If we look at thousands of years of society. Old age support came in the form of family support or charity in the community. No one in their right mind would ever be pissed off if their support from family/charity was reduced when their savings plan kicked in.

 

[9969]

A lot of people are on social asistance only because they got sick, and the insurance companies as well as the government deducts every cent until destituion. If you have been lucky enough to retire healthy, koodoos to you. If you are working hard, don't get an atitude about the "bums", lightning strikes fast, an you could be the bum next year. E-535

 

[JamesBondo]

A lot of people are on social asistance only because they got sick, and the insurance companies as well as the government deducts every cent until destituion. If you have been lucky enough to retire healthy, koodoos to you. If you are working hard, don't get an atitude about the "bums", lightning strikes fast, an you could be the bum next year. E-535

Lets be clear. Having an disabling condition doesn't make you a bum. I don't see my family that way, and therefore would not argue that way about you or anyone else.

Edit: pay special attention to the absence of any ",but...". You are not a bum.

 

[Dixie Cup]

If you check into it, you will find that he will lose approximately what he would get in OAS, not CPP, unless he retired as a chief, major or a colonel. That part of his pension that is lost is called the bridge benefit. The bridge benefit is withdrawn at age 65, even if you do not claim any other pension.

You can go here for more info on that. www.tpsgc-pwgsc.gc.ca/fac-caf/cntctns-cntctus-eng.html

So it's the CPP and not the OAS that's affected per your link. That's what I thought.

 

[JamesBondo]

The bridge benefit is withdrawn at age 65, l

It is called a "bridge benefit". Why are you so surprised that it doesn't go on forever?

 

[9969]

Tt's not supposed to go on forever, however if I paid into a registered pension plan for 30 years, I think the I should be able to have the bridging 'till 65, not lose it altogether. If they want to level the playing field that's fine, lets start deducting the bridging from people paid for pensions at 60. So' you get you registered pension from who-ever, and when you apply for the CPP bridging they deduct it from your income at 60. Thus your income at 60 is $1100 less than what you planned. That would be fair, why do the veterans and other sick Canadians have to subsidize the healthy retirees?

 

[JamesBondo]

I've paid into EI for most of my working life, if I get a job that doesn't pay as well as my last job I should be entitled to continue collecting the EI benefit.

 

[Remington1]

I just turned 65. I was in the CF for 25 years and the Public service for 13 years. I am receiving small pensions for both of these careers. The government is now going to give me OAS and take away over 700.00 a month from my other pensions. What a rip-off. I wonder why this doesn't apply to our Honorable Members of Parliament who only need to be MP's for 5 years and they get a pension. Do they get theirs clawed back when they're 65. What do you think?????

The whole system needs a reboot, OAS is equal for all citizens, CPP is rightfully based on what individuals have paid into. It is wrong for the government to stick their nose into your lifework pension, which is something one pays into with your employer. If you worked for 30 years and paid into a company pension, who should not be penalized by the government, because I would say you indisputably still qualify for the countries resources which belongs to 'all' citizens (OAS) or the CPP (not free, you paid for). It is the same scenario whereas the government believes they have the right to tax your bonus!! This is a gift, different amounts every year that can or cannot be given by your employer; and for the government to tax this one, is sheer gluttony.

 

[JamesBondo]

worked for only 30 years? wow. you really busted a nut.

 

[9969]

Yes, you may be riht, 30 years in one place that had pension another 7 elsewear. But whatever...